"We can end government censorship in a decade," Schmidt said during a speech in Washington. "The solution to government surveillance is to encrypt everything."

Setting aside the entertaining aspect of the source of said statement, I don't think encryption in and of itself is enough. Encryption performed by companies is useless, since we know by now that companies - US or otherwise - are more than eager to bend over backwards to please their governments.

What we need is encryption that we perform ourselves, so that neither governments nor companies are involved. I imagine some sort of box between your home network and the internet, that encrypts and decrypts everything, regardless of source or destination. This box obviously needs to run open source software, otherwise we'd be right back where we started.